Tom Gordon slams government’s family farm tax following OBR assessment

Shocking figures reveal inheritance tax hike will “barely move the dial” on public finances. 

The latest report from the OBR suggests that the government's changes to agricultural property relief will have little effect on public finances whilst impacting farming communities already struggling with declining incomes, high energy bills and botched trade deals.

The OBR said that its 'central estimate' was that the policy will raise £500m by 2029/30.

Many farmers already make less than minimum wage and changes to inheritance tax will mean that farms are sold to larger, more corporate organisations, hurting family farms and local communities.

Tom has had many people from Harrogate and Knaresborough and further afield in North Yorkshire contact him about the Government’s family farm tax. 

Speaking in response to the OBR’s findings, Yorkshire’s Lib Dem MP Tom Gordon, MP for Harrogate and Knaresborough, said:

"Farmers are the backbone of the British economy and our food security. This report confirms that the government must urgently rethink and scrap the family farm tax. 

“It is deeply worrying to see that expected revenue from this cruel tax is uncertain and unstable for two decades, and just further proves that the government’s rationale simply doesn’t stack up.

“After years of neglect under the Conservatives, we must support our rural and farming communities and make sure they get the support they deserve and need. 

“The Liberal Democrats will continue to urge the government to change course and to scrap the family farm tax.”

ENDS

The report can be found here.

In short, the report shows that: 

There are upside and downside risks to the degree of attrition in the long term, and the yield from this measure is not likely to reach a steady state for at least 20 years.

Any increase in gift-giving will increase attrition and reduce receipts after at least a seven-year period, while the potential proliferation of new tax planning strategies will do likewise.

In the medium term, it is likely to be more difficult for some older individuals to quickly restructure their affairs in response to the measure, meaning older farmers to be hit hardest.